Advise getting Mortgagor to refi with Bank - Posted by BankRobber
Posted by BankRobber on December 15, 1998 at 23:56:14:
I hold a 22K 1st TD and a 7K 2nd TD on 80 acres of unimproved ranch land worth 36K which I sold 5 months ago. Both notes are at 12% interest only, the Borrowers have been making regular payments. There is a loacl Bank which lends at 65% LTV on ranch land (10.5% int, 20 Year amort.). I am willing to subordinate my 2nd TD to a new 1st TD. I would be willing to Discount the 7K 2nd TD down to 5K as an additional insentive for them to refinance.
The problem is that the Borrowers speak limited English, are self employed and are afraid of Banks. I am not familar with their credit or Tax Returns, so I don’t know if this fear is justified. I am afraid that if I approach them improperly that they might become fearful and defensive (I don’t want the property back).
Any suggestions on how to present this refinance offer to them?